That would be the very same Barney Frank that fought tooth and nail and blocked the Bush Administration's attempt to put stronger regulation on Freddie and Fannie back in 2003 when the alarm bells were first sounded? The same Barney Frank, Chair of the House Financial Services Committee, who now is attempting to blame the Republicans for deregulation causing all this mess?
Yes, the very same. The problem here, as you well know, is not Frank behaving like a democratic social engineer. The problem is that he has been allowed to by Fan and Fred's charter. The very concept that many seemly now oppose that would allow "government bailouts" they had absolutely no problem with for years and years that allowed Fan and Fred's lobbyists clamoring for ever larger government backing and, therefore, increased social risk to the tax payer that allowed Fan and Fred to accumulate vast sums of profit (due to this advantage over their private sector competition) for their stockholders and huge bonuses for their executives. Recently congress missed their chance. When Fan and Fred got their bailout congress should have fired the executives immediately, put them in into receivership, broken them up, and sold off their assets.
The cry we now hear (Hilary just sounded off in the WSJ on Thursday) is that we should try to keep people in their homes. Question to Hillary: Are these the same people who received Alt A or liar loans sans pay check stubs and other documentation verifying financial solvency or those people who put no money down on the homes or those people who received interest only loans (and have no equity in the property because they only paid the interest on the loan) or those who signed up for ARM's whose original interests terms are way lower than traditional 30 year mortgages and now would have us believe they are victims of "predatory loan practices" when the loan interest terms predictably reset starting next year? What would people who saved and put money down on their regular 30 mortgages and faithfully worked hard and paid their monthly bills say: "No problem congress! I would love to pay a couple more hundred bucks towards the above people's mortgage. Excuse me now while I prepare to assume the position--again.
The fiscally responsible Republicans who are excoriated for bailing out Wall Street and calling for Fan and Fred's demise are now painted as holding up the proposed $700 billion "bailout". Seems they can't win for losing.
Well, the debate is tonight. I hope America makes the right choice, especially this November.